Is bearer cheque and self cheque same?

A bearer cheque is generally drawn in favour of a payee whose name is not mentioned on the cheque. The bank should not ordinarily insist on the presence of account holder for making cash withdrawals in case of ‘self’ or ‘bearer’ cheques unless the circumstances warrant it.

Who can use self cheque?

A self-cheque is drawn when the drawer wishes to withdraw money from the bank in cash for his use. This cheque can only be encashed in the account holder’s or the drawer’s bank. This cheque must be used carefully because if it is lost, another person may easily get it encashed by visiting the drawer’s bank.

What is the difference between self cheque and yourself cheque?

You can suffer severe financial loss if you have misplaced a bearer cheque. Self Cheque (for yourself/third party): These cheques are used for withdrawing money from your own account. It has the account holder’s name on it. Self-cheques are encashed from the branch where you have a bank account.

What are the two types of cheque?

What are the types of cheques in India?

• Bearer Cheque. A bearer cheque is the type of cheque that allows the person bearing or carrying the cheque to the bank to receive the payment specified on the cheque.
• Order cheque.
• Crossed cheque.
• Open cheque.
• Post-dated cheque.
• Stale cheque.
• Traveller’s cheque.
• Self cheque.

Can a company issue self cheque?

“Self” chq can be used from cash withdrawals from current a/cs of companies/proprietorship/partnership firms. There is no law preventing that. No Bank can decline such withdrawals. As Mr Sawant has recommended, the company should speak to the Branch Head and sort out the matter amicably.

What is self bearer cheque?

This cheque does not contain the name of the payee or bearer. Thus, the drawer must write ‘Self’ or ‘Pay to The Order of Cash’ to carry on the transaction through this cheque. The date on which the cheque is issued needs to be mentioned.

How many days a self cheque is valid?

As per RBI guidelines, with effect from April 1, 2012, the validity period of cheque is 3 months, from the date of issue. Hence, you can get payment of cheque dated two days earlier.

What is the difference between cheque and bearer cheque?

The cheque sometimes can be made payable to Cash or bearer or made payable to a specific name, for example, Ahmad Osman or Bearer. This cheque is payable by the drawee bank over the counter to the Bearer or presenter of the cheque. A Bearer cheque can be negotiated or pass to another person by mere delivery.

What is a Pay Yourself cheque?

Pay yourself cheque: The account holder issues this type of crossed cheque to the bank asking the bank deduct money from his account into bank’s own account for the purpose buying banking products like drafts, pay orders, fixed deposit receipts or for depositing money into other accounts held by him like recurring deposits and loan accounts.

Can a bank collect a cheque made payable to order?

Banks will collect cheques made payable to order if deposited for collection by any person other than the named payee. An order cheque can be a bearer cheque if the words or bearer are not cancelled out. Sometimes, the cheque may be issued to pay Cash. This is called a cash cheque.

Do you need a signature on a bearer cheque?

A bearer cheque can be collected by the bank for the credit of anyone’s account. In banking practice, the need for the encasher’s signature on the back of the cheque is merely to evidence that the encasher has received the money from the bank.